ESR’s Chinese logistics real estate portfolio comprises US$13.4 billion of New Economy AUM and a 2.5 million sqm of pipeline. Greater Shanghai has been a core strategic market for the Group. The Yangtze River Delta region – one of the strategic megalopolises and home to a cluster of e-commerce and modern logistics companies – has been an important economic powerhouse for the nation benefiting from coordinated policies introduced by the government.
The regional GDP of the Yangtze River Delta region accounted for 24.5% of China’s total in the first three quarters of 2021, up from 24.1% in the full year 2018. Demand for logistics space in Shanghai remained consistently strong in 2021, with rent rising by 2.2% year-on-year while the vacancy rate edged down by 2.4 percentage points year-on-year.
